Decreasing visitor arrivals to Hong Kong have resulted in a drop in retail sales.

June sales declined 6.9 per cent to HK$37.1 billion ($4.8 billion) from a year ago, with watches and jewellery driving the slump, that category falling 28.2 per cent.

Retail sales for the first six months decreased 1.3 per cent.

LVMH is one of the luxury retailers hit by sales slowdown in Hong Kong, partly blamed on political unrest there.